Erdogan vows to defy US 'threats' after currency crash

The lira went into free-fall sinking more than 10 percent

A financial shockwave ripped through Turkey on Friday, when its currency nosedived on concerns about its economic policies and a dispute with the US, which President Donald Trump stoked further with a promise to double tariffs on the North Atlantic Treaty Organisation ally.

The ailing Turkish lira, which had already lost one third of its value this year largely over worries about Erdogan's wider control of the economy, crashed further to a fresh record low, at one point losing 18 percent, its biggest fall since 2001.

The currency's drop - 41 percent so far this year - is a gauge of fear over a country coming to terms with years of high debt, worldwide concern over President Recep Tayyip Erdogan's push to amass power, and a souring in relations with allies such as the U.S.

Stocks in the USA and Europe skidded Friday as investors anxious about the financial stability of Turkey and how it might affect the global banking system.

Mr Brunson, an evangelical Christian, has been held since October 2016 on charges of terror and espionage, and if convicted, could face a jail term of 35 years. Trump and Vice President Mike Pence threatened on July 26 to impose sanctions on Turkey if the pastor is not set free and allowed to return to the United States. And what he did say Friday morning could weigh on global markets for some time to come.

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In 2017, 19 billion dollars worth of goods were traded between the US and Turkey.

At 8.47 a.m. Eastern time - 3:47 p.m.in Turkey - Trump had turned to Twitter to announce that he would be doubling steel and aluminum sanctions on Turkey.

These tensions and tariffs indicate a deterioration of the U.S. The lira fell further after Trump's tweet. Since then the Trump administration has repeatedly called for his release, while Ankara said the decision was up to the courts. There are multiple factors, many of which are related to the economic policies of Turkey's leader, Recep Tayyip Erdogan.

Erdogan said high foreign exchange rates were the means used in plots against Turkey.

"The country is neither crumbling, nor being destroyed or bankrupt or in a crisis", he said, and added that the way out of the "currency plot" was to boost production and "minimise interest rates".

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President Tayyip Erdogan blamed the United States for the plunge in a speech last night, but why is the lira falling?

Mr Erdogan also remained defiant, as he urged the Turkish people to exchange foreign currency or gold for lira. "This is a national, domestic battle", he told a crowd in the northeastern city of Bayburt, according to Reuters.

"This will be the response to those who have declared an economic war", he said, blaming Turkey's woes on what he described as an "interest rate lobby" seeking to push the country to higher rates.

Turkish President Recep Tayyip Erdogan, embroiled in a bitter dispute with the US, a North Atlantic Treaty Organisation ally, contended Sunday the plunging value of his country's lira currency amounted to a "political plot" against Turkey.

"Do not worry!" He said Turkey was not afraid of "threats" and added Turkey had "alternatives" for economic cooperation in many places "from Iran, to Russian Federation, to China and some European countries".

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